Having the right insurance coverage in place for your business is essential for mitigating risks and protecting your assets. While you may not think much about your insurance policy beyond paying premiums or filing claims, there’s a crucial document you should be aware of—especially when shopping for new coverage or reviewing your claims history. That document is the loss run report.
What Is a Loss Run Report?
A loss run report is essentially a record of your business’s claims history. It summarizes all past insurance claims on your policies and demonstrates potential risks to the insurance companies. Insurers use this report to evaluate how much risk they take by insuring your company: it helps them determine whether they can offer you coverage and what price would be sensible.
In detail, the insurance carriers use the loss run reports, also known as “loss runs,” to review:
- All the claims you’ve filed in the past;
- The financial impact of those claims (e.g., reserves (expected payout) and settlement costs incurred);
- The frequency of those claims;
- The locations where incidents occurred (to determine geographic risk factors).
This data is vital in the underwriting process, as it helps insurance companies determine whether they want to insure your business—and at what cost. Depending on your claims history, insurers might offer you favorable rates, increase your premiums, or sometimes even deny coverage
Why You Need a Loss Run Report
In cases where claims are absent, the loss run report states “No losses reported.” However, if you’ve submitted claims, here’s what the report will typically include:
- Policyholder (business) name
- The name of your insurance provider
- Policy number
- Policy term and policy type
- The dates of incidents and when the claims were filed
- A summary of each claim with incident descriptions (e.g., property damage, bodily injury)
- Claims’ financial impact (such as legal fees or settlement costs)
- Reserve funds (if any) set aside for open claims such as cost to settle and various expenses
- The current status of each claim (open, closed, canceled, or record only)
The valuation date is especially important as it ensures the information is up-to-date. Insurers may disregard loss runs generated over 30 days.
When shopping for insurance, it is recommended that you provide up to five years of loss history to ensure the most accurate rate. If your business has been operating for less than five years, submit all available loss run reports for the entire period you’ve been in business.
Types of Insurance That Provide Loss Run Reports
Loss runs apply to most types of commercial insurance. The most common are:
- General liability: covers all the claims related to bodily injury or property damage.
- Workers’ compensation: covers all the claims on employee injuries and illnesses related to the workplace.
- Commercial property: covers all the claims related to property damage to the business premises.
- Commercial auto: covers all the claims that involve company vehicles.
- Professional Liability (E&O): covers all the claims on negligence or errors in professional services.
How to request a Loss Run Report
Obtaining a loss run report is straightforward. Contact your current insurance provider or broker and be sure to provide the following:
- The specific policies you need loss run reports for
- How many years of reporting do you require
- Your desired timeframe for receiving the reports
To expedite the processing of your request, please make sure to state policy numbers and insurers if known.
In most states, insurers are legally required to provide loss runs within ten business days. If your insurer delays or refuses to comply, you have the right to file a formal complaint with your state’s insurance department.
Some policyholders hesitate to ask for this information, particularly if they’re planning to switch insurers, but requesting a loss run report is a routine part of the insurance industry.
Whether you’re renewing your existing policy or shopping for new coverage, understanding your loss run report can help you address recurring issues, boost risk management strategies, and position your business for more favorable insurance policy costs.